Role Of The World Trade Organization ( Wto ) - 1416 Words

Contents Page: 1. Introduction 2. Types of trade 3. The role of WTO a. Comparative Advantage b. Trading blocs 4. Trade Agreements a. NAFTA b. The European Single Market 5. Conclusion 1. Introduction: In this report I will be explaining, international trade and explain the role of the world trade organisation (WTO) in the advancing and regulation of international trade, furthermore, I will assess trade agreements and their impact on international trade. 2. Types of Trade: There are two sorts of trade that consists of invisible and visual trade. Invisible trade is the exchange of a business transaction that happens with no exchange of tangible product. Copyrights, customer service and intellectual property are some examples of†¦show more content†¦Forego your opportunity cost. This is good for both economies because they can focus on producing and produce it in a high quality plus high volumes. But however comparative advantage can be criticised in a several ways. One, It may exaggerate the benefits of specialisation by ignoring a number of costs. Such as transport costs and costs associated with trade, such as air and sea pollution. Also according to Paul Krugman, the continual use of economies of scale by global producers using new technology means that lots of countries, including China, can produce very cheaply, and export surpluses. This, along with an insatiable demand for choice and variety, means that countries typically produce a variety of products for the global market, rather than specialise in a narrow range of products, rendering the traditional theory of comparative advantage almost obsolete. b. Trading blocs Trading bloc is a group of countries within a geographical region that protect themselves from imports from non-members. Trading blocs are a form of economic integration, and increasingly shape the pattern of world trade. i. Advantages for members of trading blocs are: †¢ Free trade within the bloc - They have free access to each other s markets. †¢ Market access and trade creation - Easier access to each other’s markets means that trade between members willShow MoreRelatedRole of World Trade Organization (Wto) in Facilitating International Trade1643 Words   |  7 PagesABSTRACT World Trade Organization (WTO) is an organization for liberalizing trade. It’s a forum for governments to negotiate trade agreements. It’s a place for them to settle trade disputes. It operates a system of trade rules. The WTO began life on 1 January 1995 and has 153 members, representing more than 97% of the worlds population,  and 30 observers, most seeking membership. 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